Schlechtrimen’s grandparents founded the bakery. cologne Before World War II. The 58-year-old took over his business from his father 28 years ago and turned it into an organic his store that uses traditional recipes and bans chemical additives in bakehouses.
Still, even these innovations won’t save him from closing down a bakery and a family-run business comprised of two stores with 35 employees after almost a century. He is one of the victims of the European energy crisis caused by Russia’s cuts in natural gas used to heat homes, generate electricity and power factories.
The resulting rise in energy and power prices is putting pressure on companies already struggling with other rising costs as inflation rises.
“For some time, we have been dealing with several crises at the same time: job openings, staffing shortages, shutdowns due to the coronavirus pandemic, extreme increases in raw material costs, and the current explosion and further increase in energy costs. labor costs,” Schlechtrimmen said this week.
He pointed out that the cost of materials has increased by 50%. And “now there is also an energy cost crisis. So far we have only seen an increase of about 70% because we heat the furnaces with diesel oil. Price he fears a fourfold increase .”
Schlechtrimen tried to save energy as much as possible, but it was not enough to compensate for the increased costs.
He has also raised the prices of his products to cover skyrocketing costs, but as inflation rises, belted-out customers are closing in, selling industrially-produced baked goods at lower prices. I turned to discounters.
Ultimately, the Cologne bakery had to admit that it wasn’t making enough profit to stay in business.
Schlechtrimmen isn’t the only one struggling to make ends meet in Germany these days. Small family-run bakeries across the country are struggling to cover their costs.
“Many companies in the bakery industry are worried about how they will survive the coming months. They are facing a tsunami of costs,” he said. Friedemann BergManaging Director of the German Bakers Association.
“We want bakeries to get financial relief by providing help for the federal government to support our business effectively, quickly and non-bureaucratically,” Berg said.
The German government this month announced an additional €65bn of investment in new measures aimed at easing consumer inflation and high energy prices.
But for people like Schlechtrimmen, help may come too late.